On April 28, 2004, my realtor calls and tells me that she has found a lady looking for a rent to own house. I work up some numbers and tell the lady that I would buy any home she wanted and do a rent to own for her.
The lady agrees and I enter a contract to purchase New Construction SFH #1 for $235,000. I limit her to $10,000 in upgrades. She also pays me $2,000 deposit now and $2,500 each month for the next two months. The total deposit is $7,000, which is the same as the builder’s required deposit.
The terms of the rent to own are $1,700/mo with $500 credit each month paid on time. The option price was $290,000 in 24 months.
Within one week of moving, I have under contract three properties!